KUALA LUMPUR (March 11): The liquidator for SRC BVI, a subsidiary of SRC International Sdn Bhd, told the High Court on Monday that out of the funds meant for investment in SRC International, US$21.96 million went to Capital Place, a British Virgin Islands (BVI)-incorporated company owned by the wife of sacked Goldman Sachs banker Tim Leissner.
Angela Barkhouse, a Briton, is the second witness in the SRC International civil suit trial, which aims to recover from former prime minister Datuk Seri Najib Razak US$1.18 billion that formed the bulk of the Retirement Fund Inc (KWAP) loans of RM4 billion, allegedly taken by SRC International for investments but was misappropriated.
Barkhouse, testifying in court via Zoom from the Cayman Islands, confirmed through her witness testimony that a portion of the RM4 billion loan from KWAP made its way to a Chiyu Banking Group account owned by Capital Place, a BVI-incorporated company owned by Tim Leissner’s ex-wife Judy Chan.
The money had reached Capital Place through a series of layering where the funds had gone through many elaborate transactions with Enterprise Emerging Market Fund in Curacao, Blackstone Asia Real Estate Partners Ltd in British Virgin Islands, shell companies owned by fugitive Low Taek Jho, or Jho Low, and his associates.
She told the court that Blackstone did not do any legitimate business but was used by Jho Low to launder money with his associates.
In laying out the money trails of the SRC and KWAP funds for the court, she stated that SRC International had transferred a sum of US$481 million originating from the RM4 billion KWAP loan to SRC BVI's BSI bank account. From that sum, US$471.4 million were transferred out to Blackstone between Nov 29, 2011 and July 6, 2012 through a series of layering.
She elaborated that there were further movements of funds out of Blackstone to various intermediaries involved in the fraud against SRC International.
One of them was the US$21.96 million that went to Chan’s company. Barkhouse said that this money had been transferred in stages from between July 9, 2012 and Jan 22, 2013.
Leissner was a star witness in the trial of Roger Ng Chong Hwa — the former head of investment banking at Goldman Sachs Malaysia — in 2022 in New York. Leissner had testified to having received US$35 million from Jho Low in 2012, where he claimed that he gave half of the money to Ng.
It is not known if the US$35 million is connected to the US$21.96 million which Barkhouse testified to.
To allay suspicions, Leissner and Ng crafted a “cover story” to explain the payments so that the banks processing the funds would not grow suspicious.
The scheme was for Leissner to use the family business of his former wife Chan to cover up these transactions. Ng would tell the banks that Ng’s wife had invested in Chan’s business in China and that the US$35 million were returns from the investment.
Leissner said the story was untrue, and that he did not know if Ng had relayed it to his bank.
Ng was sentenced to 10 years in prison by the New York court.
In this case, SRC International is seeking a declaration from the court that Najib is liable to account for the company's losses of US$1.18 billion due to breach of duties and trust.
Former SRC International managing director Nik Faisal Ariff Kamil is also named as a defendant in the suit. Nik Faisal remains at large and he was last known to be in Indonesia.
SRC International is also asking for an order for Najib to compensate US$120 million and Nik Faisal to pay US$2 million to SRC International, and for the company to be entitled to trace the amount in general, exemplary and aggravated damages.
Alicia Key’s husband Swizz Beatz got US$1 million in SRC funds
Out of the funds that had been funnelled out of SRC International into Blackstone Asia Real Estate Partners Ltd, a sum of US$1 million was paid to Swizz Beatz, an American Rapper, producer and songwriter who is the husband of Grammy Award-winning songstress Alicia Keys.
Barkhouse testified that the money had originated from SRC funds and it was paid to Monsanto Studios, which the Beatz owns.
The liquidator said she was not able to determine what the payment was for, but cited media reports of the rapper performing at Jho Low’s birthday in America.
“Nor have I determined the services for which Monza Studios received US$1 million. However, I note media reporting which states that Swizz Beatz, the owner of Monza Studios had performed at Jho Low’s birthday party,” she said.
In this case, SRC International is seeking a declaration from the court that Najib is liable to account for the company's losses of US$1.18 billion due to their breach of duties and trust.
Former SRC managing director Nik Faisal Ariff Kamil is also named as a defendant in the suit. Nik Faisal remains at large and he was last known to be in Indonesia.
SRC is also asking for an order for Najib to compensate US$120 million and Nik Faisal to pay US$2 million to SRC, and for the company to be entitled to trace the amount in general, exemplary and aggravated damages.
This civil suit is different from Najib’s criminal SRC international trial where he is serving his jail term currently. In the SRC criminal trial, Najib is serving a six-year jail sentence and RM50 million fine, which was recently reduced from a 12-year jail sentence and RM210 million fine following a partial pardon by the former King.